Principles of Management

Organizational Behavior

The study devoted to understanding, explaining, and improving the attitudes and behaviors of individuals and groups in organizations

Human Resource Management

Takes theories and principles studied in OB and explores relationships between learning and job performance

Strategic Management

Focuses on the corporate tactics and industry characteristics that affect an organizations profitability

Resource Value

History, Numerous small decisions, socially comnplex resources

Job Performance

The value of the set of employee behaviors that contribute positively or negatively, to organizational goal accomplishment

Task Performance

Refers to employee behaviors that directly involve the transformation or organizational resources into the goods ot se

Organizational Commitment

The desire on the part of an employee to remain a member of the organization

Affective Commitment

Employees want to stay (emotional bonds between employees)

Continuance Commitment

Employees need to stay (salary and benefits)

Normative Commitment

Employees ought to stay (organization investing in its employees)

Rule of One-Eighth

One-half of the firms that make comprehensive changes will persist with their practices long enough to derive economic benefits

Openness to Experience

Curious, like exploring

Conscientiousness

More attention to detail, let things happen

Extraversion

Feel comfortable around lots of people, focus inward

Agreeableness

More likely to be patient with others, let go of angry feelings

Neuroticism (Emotionality)

Anxiety, paranoia, depression, aggression, higher highs and lower lows

External Locus of Control

Bad things happen due to bad luck, right place right time, if they like you they like you

Internal Locus of Control

Misfortunes result from mistakes, luck has little to do w/ outcomes, (In control)

The Big FIve

Openness, Conscientiousness (Biggest Influence), Extraversion, Neuroticism (Second Most Important)

Myers-Briggs Type Indicator

Not a good for predicting job performance, poor prediction of personality (limitations) - Self-report questionnaire. Extraversion vs Introversion, Sensing vs Intuition, Thinking vs Feeling, Judging vs Perceiving

Holland’s RIASEC Model

Provide personality profiles based on interests. Predict job performance and Turnover. Realistic, Artistic, Social, Enterprising, Conventional

Personality

Refers to the structures and propensities inside people that explain their characteristics patterns of thought, emotion, and behavior

Traits

Recurring regulatities ot trends

Cultural Values

Shared beliefs about desirable end states given a culture

Situational Strength

“Strong Situations” have clear behavioral expectations, incentives, or instructions

Trait Activation

Some situations provide cues that trigger the expression of a given trait

Realistic (RIASEC)

Practical, hands-on, real-world tasks (frank, determined, rugged)

Investigative (RIASEC)

Abstract, analytical, theory-oriented tasks (intellectual, reserved)

Artistic (RIASEC)

Entertaining, fascinating other using imagination (creative, impulsive, independent)

Social (RIASEC)

Helping, serving, assisting to others (inspiring, informative, empathic)

Enterprising (RIASEC)

Persuading, leading, outperform (energetic, sociable, ambitious, risk-taking)

Conventional (RIASEC)

Organizing, counting, regulating (careful, structured, self-controlled)

Motivation

Forces internal/external that arouses enthusiasm and persistence to purse a certain course of action. Effort/Energy, Persistence, Direction.

Intrinsic Motivation

Behavior for its own sake (satisfaction, learning, improving abilities)

Prosocial Motivation

Behavior performed to benefit/help others

Extrinsic Motivation

Behavior to acquire material/social rewards, avoid punishment

Business vs Psychology

Business leans more towards extrinsic, Psychology leans more towards intrinsic

Autonomy

Desire to direct our own lives

Mastery

Urge to get better/develop skills

Purpose

Need to do what we do (bigger than ourselves)

Equity Theory

Motivation is maximized when an employees ratio of “outcomes” to “inputs” matches (“comparison other”)

Perceived Inequality

Feeling of unfairness

Perceived Equity

Feeling of fairness

The Rub

Everyone has a different perspective on what is fair

Expectancy Theory (Victor Vroom)

Effort — Performance — Outcomes (Reward)

Expectancy

I can do it if I try (Effort - Performance)

Instrumentality

If I do it, there will be an outcome/reward (Performance - Reward)

Valence

Do I want it? How much? (Weighing the reward)

Mastery Expereinces

Successfully accomplishing tasks (most effective way)

Vicarious Experiences

Observing others successfully perform a task

Social Persuasion

Receiving encouragement and positive feedback from others

Emotional/Physiological States

Managing stress and anxiety

Goal Setting Theory

People are motivated to the extent to which they accept specific, challenging goals, receive feedback that indicates their progress

SMART

Specific, Measurable, Ambitious/Achievable, Realistic/Relevant, Time-Specfic

Psychological Enpowerment

Intrinsic motivational construct, reflects and individuals active orientation.

Meaning

Impact

Competence

Autonomy (Self-determination)

Pay and Motivation

Equity: Pay is given in proportion to inputs

Expectancy: High valence for many

Goal: Pay is linked to goals

Ment Pay Plan

Compensation plan that bases pay on performance

Commision

Pay based on a percentage of sales that the employee makes

Piece-rate Pay

Pay based on the number of units that the employee produces

Profit Sharing

Receive a share of an organizations profits

Scanlon Plan

Reduced expenses/cutting costs

Non-Monetary Motivators

Rewards or workplace practices that inspire and appreciate staff without increasing their base pay.

Recognition/Praise

Work Flexibility

Autonomy/Trust

Growth/Development

Personalized Perks

Three levels of human behavior studies in Organizational Behavior?

Individuals in organizations, work groups, and how organizations behave

Terminal Value

The estimated worth of a business or asset beyond a specific forecast period in a discounted cash flow analysis